Forest Products, Paper, and Packaging

For the paper and packaging industries to thrive in the digital age, companies must be willing to transform.

The decades-old notion of the “paperless office” has yet to come true, but the paper industry is facing significant challenges from the advancing digital age. Packaging and other forest products are also in the midst of important transitions that make innovation critical in realizing continued growth. Understanding the full landscape of energy sources as well as consumer behavior is a prerequisite to winning.

Forward-looking companies have found growth by implementing consistent cost programs, refocusing their portfolios, transforming their organizational structures, and searching for operational improvements. Innovation and R&D, especially in packaging, will help companies realize growth in new markets.

With the current market conditions, packaging and cardboard players generate the highest returns. But other companies are also capable of generating significant returns, including conglomerates involved in multiple grades. The winners in paper and packaging create value by taking a well-balanced approach to respond to the digital challenge and energy outlook, ensuring revenue growth and sustainable EBITDA margins.

Too many forecasts predict that whatever has been happening in paper will keep happening. BCG’s more accurate model is based on a foundation of expected economic growth and the impact of social factors ranging from literacy to the prevalence of e-readers.

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